CPI up 4.38 per cent in H1 despite slight drop in June on lower fuel prices

CPI up 4.38 per cent in H1 despite slight drop in June on lower fuel prices

For the six-month period, housing, electricity, water, fuel and construction materials recorded the biggest increase among major spending categories, rising by 6.72 per cent from a year earlier.

A petrol station in Hà Nội. CPI fell 0.39 per cent in June from the previous month as domestic fuel prices declined in line with global oil prices. — VNA.VNS Photo Trần Việt

Việt Nam's consumer price index (CPI) rose 4.38 per cent in the first half of 2026 compared to the same period last year, driven by higher food, housing and transport costs, while June inflation eased on lower fuel prices, the National Statistics Office (NSO) said on Friday.

CPI fell 0.39 per cent in June from the previous month as domestic fuel prices declined in line with global oil prices. However, June CPI was up 4.69 per cent over a year ago and stood 3.21 per cent higher than at the end of 2025.

The NSO’s updates showed that transport prices fell 4.85 per cent in June from the previous month, contributing a drop by 0.48 percentage points to the headline CPI as lower global oil prices pushed domestic petrol prices down 10.05 per cent and diesel prices down 10.63 per cent. Airfares also declined 11.62 per cent.

Food and catering services prices edged down 0.07 per cent in June from the previous month, trimming headline inflation by 0.02 percentage points, as lower prices for food staples and fresh food offset a 0.20 per cent increase in dining-out costs.

For the six-month period, housing, electricity, water, fuel and construction materials recorded the biggest increase among major spending categories, rising by 6.72 per cent from a year earlier and contributing 1.53 percentage points to headline inflation. Higher rents, electricity tariffs and building material costs were the main drivers.

Food and catering services prices rose 4.79 per cent, contributing 1.72 percentage points to overall inflation, as higher livestock production costs lifted pork and poultry prices and restaurants passed on rising input costs to consumers.

Transport prices increased 5.23 per cent during the period, adding 0.52 percentage points to CPI, reflecting higher fuel prices compared with the same period last year despite a decline in June.

Other categories posting notable increases included education, up 3.3 per cent, household equipment and furnishings, up 2.63 per cent, and beverages and tobacco, up 3.52 per cent.

Core inflation, which excludes food, fresh food, energy and prices of gooods and services managed by the State, rose 0.14 per cent in June from the previous month and increased 4.50per cent from a year earlier, the NSO said.

In the first half of 2026, core inflation averaged 4.12 per cent, slightly below headline CPI inflation of 4.38 per cent.

Head of the NSO’s Services and Prices Statistics Department Nguyễn Thu Oanh said that in the context rising global uncertainty, controlling inflation remains challenging in the second half of this year, including pressures from volatility on global energy markets and rising input costs.     

She said that close watch must be placed on domestic price developments to ensure supply-demand balance. Adjustments to State-managed goods and services would be implemented cautiously to support overall macroeconomic stability.

The NSO also said domestic gold prices fell 8.46 per cent in June from the previous month following a decline in global bullion prices but remained 24.11 per cent higher than a year earlier.

Global gold prices averaged US$4,284 per ounce in June, down 7.05 per cent from May, as a stronger US dollar, expectations that the Federal Reserve will maintain a tight monetary stance and weaker safe-haven demand weighed on prices.

In the domestic market, gold prices surged 58.12 per cent in the first half of this year from the same period last year.

The US dollar price index in Việt Nam rose 0.11 per cent in June from May and was up 0.57 per cent from a year earlier. For the first six months, the dollar index increased 1.75 per cent year-on-year. 

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